News

Chuck E. Cheese Q4 comp sales growth helps offset $14M revenue loss

February 22, 2019

The parent company of Chuck E. Cheese and Peter Piper Pizza, CEC Entertainment, released its 2018 Q4 results showing that a 3.3 percent increase in comparable venue sales and lower food and beverage costs during the period helped buoy a net loss of $14.2 million in the same span. That 2018 number compared to $52.9 million net income in the previous year's quarter, a news release said. 

The company pinned part of the blame for its Q4 loses on higher labor expenses from wage inflation and increased entertainment and merchandise costs related to the All You Can Play and More Tickets initiatives, launched nationally in the third quarter of 2018, as well as a $2 million increase in interest expense on its variable rate debt.

CEC reported that its total revenues grew 3.1 percent, however, to $202.9 million in the quarter, impacted by growth company-operated venue sales and lower food and beverage costs. Q4 2018 adjusted EBITDA grew $4.1 million from Q4 2017 to $30.9 million and made 

"In the fourth quarter, we continued to make great progress in advancing our brand and enhancing the experience we deliver to our guests, leading to our third consecutive quarter of comparable store growth," CEO Tom Leverton, said in the release. "We are excited by the positive impact of the new All You Can Play game packages and More Tickets initiatives we launched nationally in the third quarter, and we are optimistic about our venue remodel program and additional planned initiatives and tests to drive even more improvements to the business and improve profitability."

As of the end of Q4 20188, CEC operated a system of 606 Chuck E. Cheese's and 144 Peter Piper Pizza venues, with locations in 47 states and 14 foreign countries and territories.